I need help determining cost basis on stock that my grandparents sold recently. the stock was given to them?

Question

by their employers, and they have no idea when the acquired it. They sold it in 2006 and need to determine the cost basis, but we have no idea how to do it. Thanks!

Answer 1

How long ago was the stock given to them? The value of the stock might have been included in their W-2's the year that they received the stock. If so, that is their basis. If not then the cost basis of their stock is $0. They could also ask their former employer what their basis is.

Answer 2

You'll need to determine when the stock was given to them. If it came from an employer it's not likely that it was "given" to them. It may have been part of a bonus, stock option, or employee stock purchase plan. That said, the employer should have records and may be able to provide this information as well as the characterization of the transfer to them. The information would also include the basis.

If all fails and you cannot establish the acquisition date with reasonable certainty you'll have to use $0 as the basis for the stock.

Answer 3

you will ought to discover out what the guy who gave it to you had for his or her foundation - that turns into your foundation. in case you won't have the capacity to be sure that, then your foundation would be 0. uncertain what you advise approximately no federal tax being utilized to the sale. while you're utilising some form of tax application and it is not displaying tax, you have entered something incorrect. there's a glitch contained in the tax regulation that would assist you to get away tax in 2008 in the adventure that your earnings is low sufficient, yet no longer in 2007.

Answer 4

If it was given to them by their employers and they didn't pay anything for it, then their basis is zero.

Answer 5

search for the documents....